"It would be a significant step forward if the SNP Leadership were to reflect more accurately the views of their members and the increasing number of Scottish people who see the monarchy as an anachronism and an affront to democracy," he said.
His comments come after SNP Member of the European Parliament Alyn Smith this week proposed holding a referendum on the future of the monarchy in Scotland following independence. At present, the SNP policy is to retain the monarch as head of state if Scotland were to become independent, similar to Canada and Australia.
However, three of the four current contenders for the post of depute leader of the SNP, including Smith, publicly back the establishment of an independent republic, with an elected head of state, if Scottish voters back independence in a second referendum. The Scottish electorate previously rejected secession from the United Kingdom in a referendum held in 2014, but SNP leader Nicola Sturgeon has said it is "highly likely" a second referendum will be held following the United Kingdom's decision to exit the European Union.
"I am pleased to hear Alyn Smith's call for a referendum on the monarchy and it is interesting that some other contenders for the depute leadership of the SNP have previously expressed support for an independent Scottish republic. This may have something to do with a desire to attract the votes of SNP activists in the depute leadership contest but there are sound principled reasons for having a head of state who is democratically elected," Canavan said.
"The sovereignty of the people is far more important than the sovereignty of any monarch and a hereditary head of state should have no place in a modern 21st century society which should be based on equality and democracy," he added.
Scotland and England have shared a monarch since 1603 when Scottish King James VI became James I of England following the death of Queen Elizabeth I of England who left no heirs.
In 1707, Scotland and England came together in a political union that saw the then Scottish Parliament abolished.
In 1999, following a referendum, the UK Government devolved a range of domestic powers to Scotland that led to the establishment of the current devolved Scottish Parliament in Edinburgh. The Scottish Parliament has gradually seen an increase in its powers but defense, macro-economics and foreign affairs are still determined by the UK Government in London.
All elected members of parliament, both in Westminster and the Scottish Parliament, are required to swear an oath of allegiance or affirmation to the British crown before they can assume office. No such oath is required from members of the Northern Ireland Assembly.
